Circular Monetary Regulations - REMON 1 - 29. Integration of Minimum Cash in Pesos and Monetary Regulation Account. Modification of Rules

CENTRAL BANK OF THE ARGENTINE REPUBLIC
COMMUNICATION "A" 155 12/07/82
TO FINANCIAL ENTITIES:
Ref.: Circular MONETARY REGULATIONS -
REMON - 1 - 29. Integration of minimum cash in pesos and Monetary Regulation Account.
Modification of rules

We address you to inform you that this Institution adopted the following resolution:

"Modify the rules on the integration of minimum cash in pesos and on the compensation regime of the Monetary Regulation Account, in the manner detailed below:

1st- From July 1, 1982, upon maturity of deposits subject to compensation, financial entities will calculate daily the differences existing between the adjustments and interest effectively paid and those accrued as of 30.6.82.

2nd- From July 1, 1982, the daily balances of the differences mentioned in the previous point will be computable as availability for the purposes of the integration of minimum cash, until the settlement of the respective compensations by the Central Bank operates.

3rd- From July 1, 1982, the compensation of minimum cash reserves for the compensable deposits of those entities that do not register a deficiency in legal reserve, will be equivalent to the amount of interest and adjustments paid by their respective deposits, net of the interest and adjustments accrued until 30.6.82, except in the case of fixed-term non-transferable adjustable medium-term deposits, for which the compensation for minimum cash reserves will be limited to the adjustment of the capital.

4th- The compensations to be received by the institutions, as provided in the preceding point, will be credited by the Central Bank in the current account of each financial entity within 48 hours of the presentation of each monthly settlement."

Consequently, what was provided by Circular REMON - 1 - 24 (Communication "A" 147) is rendered ineffective.

-2-
The compensation regime for the deposits of entities that register a deficiency in legal reserve will be communicated separately.

We greet you very attentively.
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Alberto L.L. Chazelle
Manager of
Monetary Programming
Horacio A. Alonso
Deputy General Manager